[Senate Report 107-207]
[From the U.S. Government Publishing Office]
Calendar No. 487
107th Congress Report
SENATE
2d Session 107-207
_______________________________________________________________________
NTIA DIGITAL NETWORK TECHNOLOGY PROGRAM ACT REPORT
__________
R E P O R T
OF THE
COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
on
S. 414
July 9, 2002.--Ordered to be printed
__________
U.S. GOVERNMENT PRINTING OFFICE
99-010 WASHINGTON : 2002
SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION
one hundred seventh congress
second session
ERNEST F. HOLLINGS, South Carolina, Chairman
DANIEL K. INOUYE, Hawaii JOHN McCAIN, Arizona
JOHN D. ROCKEFELLER IV, West TED STEVENS, Alaska
Virginia CONRAD BURNS, Montana
JOHN F. KERRY, Massachusetts TRENT LOTT, Mississippi
JOHN B. BREAUX, Louisiana KAY BAILEY HUTCHISON, Texas
BYRON L. DORGAN, North Dakota OLYMPIA SNOWE, Maine
RON WYDEN, Oregon SAM BROWNBACK, Kansas
MAX CLELAND, Georgia GORDON SMITH, Oregon
BARBARA BOXER, California PETER G. FITZGERALD, Illinois
JOHN EDWARDS, North Carolina JOHN ENSIGN, Nevada
JEAN CARNAHAN, Missouri GEORGE ALLEN, Virginia
BILL NELSON, Florida
Kevin D. Kayes, Staff Director
Moses Boyd, Chief Counsel
Gregg Elias, General Counsel
Jeanne Bumpus, Republican Staff Director and General Counsel
Ann Begeman, Republican Deputy Staff Director
Calendar No. 487
107th Congress Report
SENATE
2d Session 107-207
======================================================================
NTIA DIGITAL NETWORK TECHNOLOGY PROGRAM ACT
_______
July 9, 2002.--Ordered to be printed
_______
Mr. Hollings, from the Committee on Commerce, Science, and
Transportation, submitted the following
R E P O R T
[To accompany S. 414]
The Committee on Commerce, Science, and Transportation, to
which was referred the bill (S. 414) to amend the National
Telecommunications and Information Administration Organization
Act to establish a digital network technology program, and for
other purposes, having considered the same, reports favorably
thereon with amendments and recommends that the bill (as
amended) do pass.
Purpose of the Bill
The purpose of the bill, as amended, is to establish a new
grant program within the National Telecommunications and
Information Administration (NTIA) of the Department of Commerce
to provide not more than $250 million for Fiscal Years 2003
through 2007 to help address the technology gap that exists at
many Minority-Serving Institutions (MSIs), such as Historically
Black Colleges and Universities (HBCUs), Hispanic-Serving
Institutions, and Tribal Colleges.
Background and Needs
Because of the rapid advancement and growing dependence on
technology, access to the Internet has become more critical to
economic and educational advancement. The President's
Information Technology Advisory Committee estimated in its
February 2000 report, Resolving the Digital Divide:
Information, Access, and Opportunity, that sixty percent of all
jobs will require information technology skills. This report
also found that jobs in the information technology industry pay
significantly higher salaries than non-information technology-
related jobs. Therefore, people who lack access to information
technology tools will be at an increasing disadvantage as they
seek employment opportunities in the 21st Century.
Consequently, it is crucial that all institutions of higher
education provide their students with access to the most
current information technology (IT).
Nonetheless, the testimony provided to the Committee's
Subcommittee on Science, Technology, and Space at a February
27, 2002, hearing showed that MSIs lack basic IT
infrastructure. For example, an October 2000 study completed by
the Department of Commerce and the National Association for
Equal Opportunity in Higher Education entitled, Historically
Black Colleges and Universities: An Assessment of Networking
and Connectivity, showed that while 95 percent of the 80
respondents to the survey have a campus network comprised of
voice, data and voice, and/or data only, half of those HBCUs
surveyed did not have computers available in the location most
accessible to students--their dormitories. Additionally, the
majority of HBCUs are not using high-speed connectivity to the
Internet, and only 3 percent of these colleges and universities
indicated that financial aid was available to help their
students close the computer ownership gap.
Legislative History
S. 414 was introduced on February 28, 2001, by Senator
Cleland. Senators Hollings, Stevens, Inouye, Breaux, Miller,
Reid, Kerry, Johnson, Mikulski, Akaka, Carnahan, Landrieu,
Allen, Boxer, and Edwards are co-sponsors of the legislation.
The Subcommittee on Science, Space, and Technology held a
hearing on S. 414 on February 27, 2002. Witnesses included Dr.
Antonio Flores, President and CEO, Hispanic Association of
Colleges and Universities; the Honorable William Gray, III,
President and CEO, United Negro College Fund; Dr. Frederick S.
Humphries, President and CEO, National Association for Equal
Opportunity in Higher Education (NAFEO); Dr. Gerald ``Carty''
Monette, President, Turtle Mountain Community College and
Chairman, Committee on Technology, American Indian Higher
Education Consortium; Dr. Juliet V. Garcia, President,
University of Texas at Brownsville and Texas Southmost College;
Dr. Marie V. McDemmond, President, Norfolk State University;
Mr. George Sandoval, Network Administrator, Dine College; and
the Honorable Louis Sullivan, MD, President, Morehouse School
of Medicine, Immediate Past President, Atlanta University
Center Council of Presidents and former Secretary of Health and
Human Services during the Administration of President George
H.W. Bush. These witnesses discussed the information technology
resources needs of MSIs.
On May 16, 2002, the Committee met in open executive session
and ordered S. 414 reported with an amendment. The amendment
clarified the bill's intent and modified the authorization
level to $250 million for the period covering Fiscal Years 2003
through 2007.
Estimated Costs
In accordance with paragraph 11(a) of rule XXVI of the
Standing Rules of the Senate and section 403 of the
Congressional Budget Act of 1974, the Committee provides the
following cost estimate, prepared by the Congressional Budget
Office:
S. 414--NTIA Digital Network Technology Program Act
Summary: S. 414 would establish a new grant program within
the National Telecommunications and Information
Administration's (NTIA's) Technology Opportunities Program in
the Department of Commerce. Authorizations under the bill would
total $250 million over the 2003-2007 period, and CBO estimates
that appropriation of the authorized levels would result in
additional outlays of the same amount.
Enacting the bill would not affect direct spending or
receipts; therefore, pay-as-you-go procedures would not apply.
S. 414 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform act (UMRA)
and would impose no costs on state, local, or tribal
governments.
Estimated cost to the Federal Government: The estimated
budgetary impact of S. 414 is shown in the following table. The
costs of this legislation fall within budget function 500
(education, training, employment, and social services). The
estimate assumes that outlays will follow historical spending
rates for similar competitive grant programs.
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-----------------------------------------------------------
2002 2003 2004 2005 2006 2007
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Digital network technology program:
Estimated authorization level................... 0 250 0 0 0 0
Estimated outlays............................... 0 18 115 68 50 0
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.
S. 414 would create a new digital network technology grant
program and authorize not more than $250 million for the 2003-
2007 period. CBO assumes the full amount is authorized in 2003.
If the authorized amount is appropriated in 2003, outlays would
increase by $18 million in the first year and by $250 million
over the 2003-2006 period.
The Technology Opportunities Program awards grants to state
and local government and nonprofit organizations to enhance the
delivery of social services, such as education, through
technology. S. 414 would create a new grant program for
historically black colleges and universities, Hispanic-serving
institutions, tribally controlled colleges or universities,
Alaska Native-serving institutions, Native Hawaiian-serving
institutions, and other institutions enrolling a substantial
number of minority, low-income students.
Institutions would apply for grants to help them acquire
equipment and instruction in digital network technologies.
Grants would be awarded through a competitive process and the
recipients would be required to provide matching funds.
Pay-as-you-go considerations: None.
Intergovernmental and private-sector impact: S. 414
contains no intergovernmental or private-sector mandates as
defined in UMRA and would impose no costs on state, local, or
tribal governments. The bill would benefit public universities
by authorizing $250 million in grants for institutions of
higher education, including public universities, to strengthen
their capacity to provide instruction in digital network
technologies. Any costs incurred by states to participate in
this program would be voluntary.
Estimate prepared by: Federal costs: Donna Wong; impact on
state, local, and tribal governments: Elyse Goldman; impact on
the private sector: Cecil McPherson.
Estimate approved by: Peter H. Fontaine, Deputy Assistant
Director for Budget Analysis.
Regulatory Impact Statement
In accordance with paragraph 11(b) of rule XXVI of the
Standing Rules of the Senate, the Committee provides the
following evaluation of the regulatory impact of the
legislation, as reported:
NUMBER OF PERSONS COVERED
The Committee believes that the bill would not subject any
individuals or businesses affected by the legislation to any
additional regulation.
ECONOMIC IMPACT
This legislation would not have an adverse economic impact on
the Nation. It authorizes funding for information technology-
related grants to MSIs.
PRIVACY
This legislation would not have a negative impact on the
personal privacy of individuals.
PAPERWORK
This legislation would require each grant recipient to
provide an annual report to the Secretary of Commerce
(Secretary) on its use of the funding. In addition, S. 414
would require the Secretary, in consultation with the Secretary
of Education, to review the annual reports and evaluate the
digital network technologies program based on these reports
and, at the end of the third year, conduct an evaluation
describing the program's activities and assessing the short-
range and long-range impact of those activities. Based on this
evaluation, the Secretary would submit a report to Congress,
within one year, which would include recommendations on the
continuing need for Federal support of the program.
Section-by-Section Analysis
Section 1 would set forth the Short Title, ``NTIA Digital
Network Technology Program Act.''
Section 2 would establish a program to address the technology
gap that exists at many MSIs by amending the National
Telecommunications and Information Administration Organization
Act (47 U.S.C. 901 et seq.) by adding a new Part D, The Digital
Network Technology Program as follows:
New Section 171 of Part D would direct the Secretary to
establish a digital network technologies program within the
NTIA's Technology Opportunities Program. The purpose of the
digital network technologies program is to strengthen the
ability of MSIs to provide instruction in digital network
technologies via grants, contracts or cooperative agreements
between NTIA and an MSI.
New section 172 of Part D would set forth the specific
activities that may be supported via a grant, contract or
cooperative agreement under the digital network technologies
program, including:
(1) Acquiring equipment, instrumentation, networking
capability, hardware and software, digital network
technology, and infrastructure;
(2) Developing and providing educational services;
(3) Providing teacher education, library and media
specialist training, and preschool and teacher aid
certification to individuals seeking to acquire or
enhance technology skills in order to use technology in
the classroom or instructional process;
(4) Implementing joint projects to provide education
regarding technology in the classroom with a State or
State education agency, local education agency,
community-based organization, national non-profit
organization, or business; or
(5) Providing professional development to those with
institutional responsibility for technology education.
New Section 173 of Part D would describe application and
review procedures and provisions for peer review of
applications. To be eligible for a grant, an MSI would submit
an application to the Secretary to be reviewed by a peer-review
panel established by the Secretary. In selecting the members
for such panel, the Secretary may consult with appropriate
cabinet-level officials, representatives of non-Federal
organizations, and representatives of eligible institutions to
ensure that the membership of such panel reflects membership of
the minority higher education community, including Federal
agency personnel and other individuals who are knowledgeable
about issues regarding MSIs.
New section 174 of Part D, would require an applicant MSI to
commit to non-Federal cost-sharing (directly or through
donations from public or private entities) in the amount of the
lesser of 25 percent or $500,000. This cost-sharing would be
waived for any institution or consortium with an endowment of
less than $50 million.
New Section 175 of Part D would make an institution that
receives a grant that exceeds $2,500,000 ineligible to receive
another grant until every other eligible institution has
received a grant through the Digital Network Technologies
Program.
Under new section 176 of Part D each grant recipient would be
required to provide an annual report to the Secretary on its
use of the funding. In addition, this section would require the
Secretary, in consultation with the Secretary of Education, to
review the annual reports from the grant receipts and evaluate
the digital network technologies program based on these
reports. At the end of the third year, the Secretary would
evaluate the activities undertaken by institutions and assess
their short-range and long-range impact. The Secretary would be
required to issue and submit the report to the Congress within
one year after such evaluation. The report would include
recommendations concerning the need for continued Federal
support of the program.
Using the meaning of the terms as defined by the Higher
Education Act of 1965, section 3 of the reported bill would
define eligible institutions as HBCUs and consortia thereof;
Hispanic-serving institutions; Tribally controlled colleges or
universities; Alaska Native-serving institutions; and Native
Hawaiian-serving institutions. In addition, any institution
determined by the Secretary, in consultation with the Secretary
of Education, to have enrolled a substantial number of
minority, low-income students during the previous academic year
who received assistance under subpart I of part A of title IV
of the Higher Education Act of 1965 for that year, would be
eligible.
Section 4 would authorize appropriations of not more than
$250 million for the five year period covering fiscal years
2003 through 2007 to carry out Part D of the NTIA Organization
Act.
Changes in Existing Law
In compliance with paragraph 12 of rule XXVI of the Standing
Rules of the Senate, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be
omitted is enclosed in black brackets, new material is printed
in italic, existing law in which no change is proposed is shown
in roman):
NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION ORGANIZATION
ACT
TITLE I--NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION
SEC. 102. DEFINITIONS; FINDINGS; POLICY
[47 U.S.C. 901]
(a) Definitions.--In this title, the following definitions
apply:
(1) The term ``NTIA'' means the National
Telecommunications and Information Administration.
(2) The term ``Assistant Secretary'' means the
Assistant Secretary for Communications and Information.
(3) The term ``Secretary'' means the Secretary of
Commerce.
(4) The term ``Commission'' means the Federal
Communications Commission.
(5) The term ``Corporation'' means the Communications
Satellite Corporation authorized in title III of the
Communications Satellite Act of 1962 (47 U.S.C. 731 et
seq.).
(6) The term ``eligible institution'' means an
institution that is--
(A) a historically Black college or
university that is a part B institution, as
defined in section 322(2) of the Higher
Education Act of 1965 (20 U.S.C. 1061(2)), an
institution described in section 326(e)(1)(A),
(B), or (C) of that Act (20 U.S.C.
1063b(e)(1)(A), (B), or (C)), or a consortium
of institutions described in this subparagraph;
(B) a Hispanic-serving institution, as
defined in section 502(a)(5) of the Higher
Education Act of 1965 (20 U.S.C. 1101a(a)(5));
(C) a tribally controlled college or
university, as defined in section 316(b)(3) of
the Higher Education Act of 1965 (20 U.S.C.
1059c(b)(3));
(D) an Alaska Native-serving institution
under section 317(b) of the Higher Education
Act of 1965 (20 U.S.C. 1059d(b));
(E) a Native Hawaiian-serving institution
under section 317(b) of the Higher Education
Act of 1965 (20 U.S.C. 1059d(b)); or
(F) an institution determined by the
Secretary, in consultation with the Secretary
of Education, to have enrolled a substantial
number of minority, low-income students during
the previous academic year who received
assistance under subpart I of part A of title
IV of the Higher Education Act of 1965 (20
U.S.C. 1070a et seq.) for that year.
(b) Findings.--The Congress finds the following:
(1) Telecommunications and information are vital to
the public welfare, national security, and
competitiveness of the United States.
(2) Rapid technological advances being made in the
telecommunications and information fields make it
imperative that the United States maintain effective
national and international policies and programs
capable of taking advantage of continued advancements.
(3) Telecommunications and information policies and
recommendations advancing the strategic interests and
the international competitiveness of the United States
are essential aspects of the Nation's involvement in
international commerce.
(4) There is a critical need for competent and
effective telecommunications and information research
and analysis and national and international policy
development, advice, and advocacy by the executive
branch of the Federal Government.
(5) As one of the largest users of the Nation's
telecommunications facilities and resources, the
Federal Government must manage its radio spectrum use
and other internal communications operations in the
most efficient and effective manner possible.
(6) It is in the national interest to codify the
authority of the National Telecommunications and
Information Administration, an agency in the Department
of Commerce, as the executive branch agency principally
responsible for advising the President on
telecommunications and information policies, and for
carrying out the related functions it currently
performs, as reflected in Executive Order 12046.
(c) Policy.--The NTIA shall seek to advance the following
policies:
(1) Promoting the benefits of technological
development in the United States for all users of
telecommunications and information facilities.
(2) Fostering national safety and security, economic
prosperity, and the delivery of critical social
services through telecommunications.
(3) Facilitating and contributing to the full
development of competition, efficiency, and the free
flow of commerce in domestic and international
telecommunications markets.
(4) Fostering full and efficient use of
telecommunications resources, including effective use
of the radio spectrum by the Federal Government, in a
manner which encourages the most beneficial uses
thereof in the public interest.
(5) Furthering scientific knowledge about
telecommunications and information.
* * * * * * *
PART D--DIGITAL NETWORK TECHNOLOGY PROGRAM
SEC. 171. PROGRAM AUTHORIZED.
The Secretary shall establish, within the NTIA's Technology
Opportunities Program a digital network technologies program to
strengthen the ability of eligible institutions to provide
capacity for instruction in digital network technologies by
providing grants to, or executing contracts or cooperative
agreements with, those institutions to provide such
instruction.
SEC. 172. ACTIVITIES SUPPORTED.
An eligible institution shall use a grant, contract, or
cooperative agreement awarded under this part--
(1) to acquire the equipment, instrumentation,
networking capability, hardware and software, digital
network technology, and infrastructure;
(2) to develop and provide educational services,
including faculty development, to prepare students or
faculty seeking a degree or certificate that is
approved by the State, or a regional accrediting body
recognized by the Secretary of Education;
(3) to provide teacher education, library and media
specialist training, and preschool and teacher aid
certification to individuals who seek to acquire or
enhance technology skills in order to use technology in
the classroom or instructional process;
(4) to implement a joint project to provide education
regarding technology in the classroom with a State or
State education agency, local education agency,
community-based organization, national non-profit
organization, or business, including minority business
or a business located in HUB zones, as defined by the
Small Business Administration; or
(5) to provide professional development to
administrators and faculty of eligible institutions
with institutional responsibility for technology
education.
SEC. 173. APPLICATION AND REVIEW PROCEDURE.
(a) In General.--To be eligible to receive a grant, contract,
or cooperative agreement under this part, an eligible
institution shall submit an application to the Secretary at
such time, in such manner, and accompanied by such information
as the Secretary may reasonably require. The Secretary, in
consultation with the panel described in subsection (b), shall
establish a procedure by which to accept such applications and
publish an announcement of such procedure, including a
statement regarding the availability of funds, in the Federal
Register.
(b) Peer Review Panel.--The Secretary shall establish a peer
review panel to aid the Secretary in establishing the
application procedure described in subsection (a) and selecting
applicants to receive grants, contracts, and cooperative
agreements under section 171. In selecting the members for such
panel, the Secretary may consult with appropriate cabinet-level
officials, representatives of non-Federal organizations, and
representatives of eligible institutions to ensure that the
membership of such panel reflects membership of the minority
higher education community, including Federal agency personnel
and other individuals who are knowledgeable about issues
regarding minority education institutions.
SEC. 174. MATCHING REQUIREMENT.
The Secretary may not award a grant, contract, or cooperative
agreement to an eligible institution under this part unless
such institution agrees that, with respect to the costs to be
incurred by the institution in carrying out the program for
which the grant, contract, or cooperative agreement was
awarded, such institution will make available (directly or
through donations from public or private entities) non-Federal
contributions in an amount equal to \1/4\ of the amount of the
grant, contract, or cooperative agreement awarded by the
Secretary, or $500,000, whichever is the lesser amount. The
Secretary shall waive thematching requirement for any
institution or consortium with no endowment, or an endowment that has a
current dollar value lower than $50,000,000.
SEC. 175. LIMITATION.
An eligible institution that receives a grant, contract, or
cooperative agreement under this part that exceeds $2,500,000,
shall not be eligible to receive another grant, contract, or
cooperative agreement under this part until every other
eligible institution has received a grant, contract, or
cooperative agreement under this part.
SEC. 176. ANNUAL REPORT AND EVALUATION.
(a) Annual Report Required From Recipients.--Each institution
that receives a grant, contract, or cooperative agreement under
this part shall provide an annual report to the Secretary on
its use of the grant, contract, or cooperative agreement.
(b) Evaluation by Secretary.--The Secretary, in consultation
with the Secretary of Education, shall--
(1) review the reports provided under subsection (a)
each year;
(2) evaluate the program authorized by section 171 on
the basis of those reports; and
(3) conduct an evaluation at the end of the third
year.
(c) Contents of Evaluation.--The Secretary, in the
evaluation, shall describe the activities undertaken by those
institutions and shall assess the short-range and long-range
impact of activities carried out under the grant, contract, or
cooperative agreement on the students, faculty, and staff of
the institutions
(d) Report to Congress.--The Secretary shall submit a report
to the Congress based on the evaluation within 1 year after
conducting the evaluation. In the report, the Secretary shall
include such recommendations, including recommendations
concerning the continuing need for Federal support of the
program, as may be appropriate.